Kohinoor Mills incurs Rs190m loss as margins plummet

September 16, 2024 (MLN): Kohinoor Mills Limited (PSX: KML) incurred a net loss of Rs189.72 million [LPS: Rs3.73] in the April-June quarter as its margins more than halved.

That compares to a profit of Rs625.98m [EPS: Rs12.3] earned in the same period last year (SPLY).

Going by the results, the company's revenue fell 10.7% to Rs7.14bn as compared to Rs7.99bn in SPLY.

Moreover, its cost of sales rose 3.4%, worsening the gross profit by 59.0% to Rs742.85m in Q4 FY24.

The gross margins plunged to 10.4% as compared to 22.6% in SPLY.

During the period under review, other income grew by 28.1% to stand at Rs122.65m in Q4 FY24 as compared to Rs95.73m in SPLY.

On the expense side, the company's administrative expenses fell 23.5% from a year ago to Rs172.63m, while selling and distribution expenses rose 6.3% to Rs370.99m.

The company’s finance cost declined by 10.0% to Rs399.15m as compared to Rs443.39m in SPLY, likely due to lower borrowing costs.

On the tax front, the company paid a lower tax worth Rs141.08m against the Rs174.76m paid in the corresponding period of last year, depicting a decrease of 19.3%.

This translates to an effective tax rate of 290.1% as compared to 21.8% in SPLY.

Amount in thousand except for EPS

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